Local Government Must Ensure the Revenue and Expenditure of the Budget

Local authorities must ensure the revenue and expenditure from budget sources (Illustrative image)

In Article 2 of Circular 188/2010/TT-BTC, regulations on the principles of revenue decentralization and sharing of revenues among local government budget levels are prescribed as follows:

- Align the source of revenue with expenditure tasks and management capability of each level of local government, ensuring resources for levels to proactively perform tasks of socio-economic development, ensuring national defense, security, and social safety and order within their management scope; encourage levels to strengthen revenue management, prevent revenue loss; limit dividing small-scale sources of revenue among many levels; limit using multiple sharing rates for each revenue as well as among administrative units within the area.- The percentage (%) of revenue sharing for their budget and the lower levels' budget must not exceed the percentage (%) sharing rate prescribed by higher levels for each shared revenue. Particularly, the commune-level budget, town-level budget, and district-level city budget are entitled to a minimum percentage (%) sharing rate for certain revenues.- Ensure compliance with the criteria for revenue decentralization and revenue sharing among budget levels of local governments to facilitate management, inspection, and monitoring of revenue sources of budget levels.- Ensure fairness, transparency, and balanced development of budget sources among areas within the locality to proactively perform assigned tasks, while ensuring concentrated budget management of levels within the locality.

For more details, refer to: Circular 188/2010/TT-BTC, effective from January 6, 2011.

Nguyen Phu

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